Budget 2019 Employer Payroll Focus

There was no change to tax rates for 2019, the standard rate will remain at 20% and the higher rate at 40%.

Standard Rate Cut Off Points (SRCOPs) will be increased by €750 from 1st January 2019.

Earned Income Tax Credit

The Earned Income Tax Credit will be increased by €200 from €1,150 to €1,350.

Home Carer Tax Credit

The Home Carer Tax Credit will be increased by €300 from €1,200 to €1,500.

Universal Social Charge (USC)

Exemption threshold remains at €13,000

4.75% rate reduced to 4.5%

2% threshold increased by €502 from €19,372 to €19,874

No change to 8% rate

For 2019, USC will apply at the following rates for those earning in excess of €13,000

Rate Bands

Rate

Up to €12,012

0.5%

Next €7,862

2%

Next €50,170

4.5%

Balance

8%

Medical card holders and individuals aged 70 years and older whose aggregate income does not exceed €60,000 will pay a maximum rate of 2%.

The emergency rate of USC remains at 8%.

Non PAYE income in excess of €100,000 is subject to USC at 11%.

National Training Levy

The National Training Levy of 0.8% which is collected as part of the employer PRSI contribution will increase to fund further and higher education, the increases are as follows:

0.9% in 2019

1% in 2020

Pay Related Social Insurance (PRSI)

With the increase in the National Training Levy which is collected as part of the employer PRSI contribution, employer PRSI will increase as follows:

8.6% increased to 8.7%

10.85% increased to 10.95%

The weekly threshold for the higher rate of employer PRSI will be increased from €376 to €386.

The rates of PRSI for Class S will remain unchanged but the range of benefits available to Class S contributions will be extended to include Jobseeker’s Benefit in late 2019.

Benefit in Kind (BIK) - Electric Cars

The 0% rate of BIK introduced in Budget 2018 for electric vehicles provided by an employer to an employee has been extended until 2021 with a cap of €50,000 on the Original Market Value of the vehicle.

National Minimum Wage

The National Minimum Wage will increase from €9.55 to €9.80 per hour in respect of hours worked on or after 1st January 2019.

Social Welfare Payments

There will be a €5 increase in all weekly Social Welfare payments with effect from week commencing 25th March 2019. The maximum personal rate of Illness Benefit will be increased to €203 per week. Maternity Benefit and Paternity Benefit will be increased to €245 per week.

Paid Parental Leave

The Budget provides for 2 additional weeks paid parental leave per parent (paid by the DEASP) to be introduced in November 2019. The leave must be taken during the first year following the birth of a child.

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